October/November 2016

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VOLUME 15  NUMBER 5

Are we being out-competed by global groups?

DUCKING and diving can be a necessary strategy, especially in crossfire situations, which is not entirely unlike operating in the current market conditions. One such scenario presented itself in the blow moulding sector of late, namely the arrival of unexpected international competitors.

The entry of Alpla of Austria and Serioplast of Italy has seen fairly substantial container contract work moved away from some of the top South African convertors. Make no mistake, the European arrivals are well-established and efficient operations. But you have to ask why the European operations were welcomed by the SA government and IDC, who apparently supplied fairly substantial funding for the new ventures?

No-one can really argue with the European convertors, who were most probably encouraged to open local operations by the brand groups they supply. These are global agreements and similar scenarios are present in most national markets. But the Europeans are employing very few people and are sourcing their own machinery. Now we hear they are also having their moulds made in Europe, resulting in lost work to some of South Africa’s top toolrooms. And to really rub the salt in, we hear, the newcomers recently started importing closures from the Middle East. Again, lost work for the local convertors.

This has been a hard lesson for a number of the local blow moulding companies. A similar scenario has been playing out in the flexibles market, where Amcor (Australia/USA) and Constantia (also Austria) have recently established themselves in South Africa, with a similar loss of contract work for the local film manufacturers and ratcheting up of the competitiveness rate.

Are we being out-competed by these global groups? It is obviously possible for South African companies to set up converting operations in foreign countries. Developing a business to the point where one can compete internationally is a major challenge, but not impossible. So, after ducking and diving after the initial fusillade, all we can do is regroup and plan … and we are happy to report that a number of the local convertors are succeeding in exactly this area: read about Polyoak setting up in Zimbabwe and Wilvic Plastics in Australia in this issue. Well done to both companies!

 

Developing product designers

In this issue we also discuss how many company owners appear to take a product designer for granted. But there could be a win-win solution involving the designer and the brand owner.

Due to the extraordinary costs to manufacture tooling to produce innovative ideas, a product designer, together with the brand owner, could set aside funds to support the development of the design concept to make the idea/innovation a reality. After all, brand owners do have the power to engage in developments that will enhance their brand against those of competitors.

In this way the designer cannot be exploited for his/her efforts under such demands requested by bossy individuals/owners of companies or famous brand housed corporates.

But it may not only be financial incentives only which encourage designers to perform, or for that matter all employees. An unusual competition is conducted in the USA annually for exactly this purpose: the ‘NorthCoast 99 Great Place to Work’ event conducted in Ohio annually honours human resources and talent management organisation that develops people in the workplace. Read more about this on page 66.

Industry News
  • ISO for Envandé Rosalie Akerman, Envandé CEO, has seen the company grow in a tough market and, after some challenging moments, gain ISO 9001:2008 accreditation   RUBBER recycling is a challenging sector in which to gain market traction but Envandé...
  • VescoPlastics expands capacity SOUTH African thermoplastic producer VescoPlastics last month began installation of a Marufuku double-column machining centre capable of continuous milling over 6,000 mm lengths.
  • Polymould now able to offer parts with shot weight of up to 400g POLYMOULD, the Benoni-based tool and die making company, has grown rapidly since its establishment 21 years ago, with its most recent installation being a Hysion HXM 218 ton injection moulding which can produce parts with a shot weight of up to 400g.
  • Plastics/SA, DTI on exports drive PLASTICS/SA recently conducted a series of ‘exporter development’ workshops around the country with the aim of assisting and even encouraging convertors to develop export markets for themselves.
  • Safripol expected to join KAP family KAP Industrial Holdings appears to be on track to complete its purchase of Safripol in what will be one of the biggest transactions ever in the regional plastics industry, for an estimated R4,1-billion
  • Packaging industry given more time to submit waste management plans PackagingSA met with BUSA and the DEA last week to discuss the details and implications of the intention to once again call for industry waste management plans. In the meantime the deadline of 12 October for comment is fast approaching.
  • iChill appointed SA agent for Euro Chiller ICHILL has been appointed as the SA representative for Euro Chiller, an Italian manufacturer of a comprehensive range of chilling machinery for manufacturing industries, and specifically for the plastics converting sector.
  • Sheet extruder EBF saved at 11th hour NATHI Nkomzwayo and Thabo Sibutha are the new owners of EBF Plastics, the Meadowdale, Johannesburg, sheet extrusion business.
  • Cabletech Marketing visited by Haitian sales & service team Haitian International recently appointed Cabletech Marketing as representative for the worldwide giant.
  • Second time lucky, Frewen gets into Action ACTION Plastics has recently been purchased by Bruce Frewen – and it’s business as usual at the Sebenza, Johannesburg, blow moulding business.
Technology
  • K in Düsseldorf presents leading edge technology The 20th edition of the K trade fair in 2016 from 19-26 October is a benchmark and orientation point for anybody interested in a comprehensive overview of the plastics and plastics processing industry.
  • Additive line for recycled plastic compounds STRUKTOL Company of America, a global supplier of polymer additives, has developed unique process additives for reclaimed and recycled plastics and for polymer compounds that contain recycled content.
  • New blue-tone carbon black masterbatches for automotive market MODERN Dispersions Inc, a global supplier of thermoplastic compounds and concentrates, has launched blue-tone carbon black masterbatches for use in automotive interior applications.
  • Bright deep shades for PU foam MILLIKEN will join forces at K2016 with polyurethane (PU) foam producer Torres Espic and foam-cutting innovators Fecken-Kirfel to demonstrate the appeal of Milliken’s Reactint® colourants.
  • Seamless integration of light and haptics COVESTRO will be showcasing the prototype of a new design for a steering wheel cover.
  • Rapid unveils next-generation shredders for plastics SIZE-reduction technology specialist Rapid Granulator is introducing a new family of shredders for plastics: The Raptor Series.
  • Perfect preforms THE PreWatcher III by the German company INTRAVIS is an inspection system especially designed for inline inspection of preforms. It inspects the quality characteristics of up to 72,000 preforms per hour.
  • Thermoforming systems with decoration, hygiene & productivity in focus IN focus at the ILLIG stand will be the performance of in-mould labelling in thermoforming (IML-T), hygienic production and enhanced productivity through technical optimization, as well as the systematic expansion of automation.
  • Experience meets innovation ENGEL will present its inject 4.0 programme at K2016. The aim of Industry 4.0 is a smart factory.
  • Addex's ‘Intensive Cooling Experience’ delivers blown film gains ADDEX Inc has launched the Intensive Cooling Experience (ICE) system, a unique cooling technology that can increase output by 40-60% for blown film extrusion lines.